US private aviation provider Wheels Up net losses widened during the fourth quarter of 2024 to $87.5 million, up from $81.5 million during the same period of the year prior.
Revenue during the fourth quarter of the year, totalled $204.8 million, down from $246.3 million that was recorded during the same period of 2023.
Adjusted EBITDA saw a 70% improvement on the year prior, narrowing in the fourth quarter to a loss of $11.3 million.
“The fourth quarter was our lowest adjusted EBITDA loss since going public, with the month of December achieving nearly breakeven performance,” said George Mattson, Wheels Up chief executive officer.
On a full year basis, Wheels Up narrowed its net loss to $339.6 million from $487.3 million during the year prior. Despite this, overall revenue for the year saw a 37% decrease, down to $792.1 million.
Mattson added: “The combination of long-term, foundational improvements to our operation and commercial engine and the early positive signs from our fleet modernisation has provided solid momentum as we enter 2025 and work toward our long-term objective of building a resilient business model with a strong balance sheet and consistent profitability.”
The company expects its fleet modernisation strategy to result in the transition of Wheels Up's four existing jet aircraft types to Embraer's Phenom 300/300E and Bombardier's Challenger 300/350 aircraft.
As part of this strategy, the company added 18 Phenom aircraft and retired 50 owned and leased legacy jets and King Air aircraft during 2024. Results for the December quarter include a non-cash $9 million charge associated with reserving for excess parts inventory from aircraft expected to exit the fleet.
In addition to these results, Wheels Up has also appointed John Verkamp as its new chief financial officer.
Verkamp has previously held financial leadership at GE and GE Vernova, including his most recent role as chief financial officer at Gas Power Global Services, he will assume the new position from March 31, 2025.
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